Sustainability is also referred to as
going green.
keeping green.
sustaining green.
none of these answer choices is correct.
One way to cope with bullwhip effect is for supply chain members to share demand information.
A computer-to-computer exchange of business documents in a standard format is known as electronic data interchange (EDI)
A bullwhip effect can
increase demand.
increase inventories.
increase customer service levels.
increase capacity.
All of the following are performance metrics in the SCOR system, except
asset fulfillment.
value-added productivity.
production flexibility.
perfect order fulfillment.
Getting the members of a supply chain to collaborate and work together is called supply chain integration.
Information sharing among supply chain members will typically result in all of the following except
an increased bullwhip effect.
greater trust and confidence among supply chain members.
faster response time.
early problem detection.
Supply chain management focuses on integrating and managing the flow of
services.
information.
goods.
all of these choices are correct.
The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the
inventory supply time.
aggregate orders processed.
fill rate.
inventory turnover.
The purchasing of goods and services from suppliers is called
sourcing.
offshoring.
procurement.
None of these choices are correct.
One way to reduce the bullwhip effect is for supply chain members to
make ordering decisions independently of each other.
share demand forecasts with other supply chain members.
restrict information flows between supply chain members.
create demand forecasts independently of other supply chain members.
The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream.
Enterprise Resource Planning (ERP) is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.
Suppliers are upstream members of a supply chain.
All the following are approaches used in risk pooling within a supply chain except
reducing the number and variety of parts.
encouraging large orders.
combing inventories from multiple locations into one location.
Distributors, warehouses, and retailers are referred to as _____________ supply chain members.
downstream
upstream
procurement
In general, it can be said of a modern supply chain that ________ information has the effect of ________ inventory.
increasing, increasing
decreasing, decreasing
increasing, decreasing
decreasing, increasing
Suppliers and customers rarely participate in the design of a supply chain.
Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.
A computer-to-computer exchange of business documents in a standard format is known as
e-business.
radio frequency identification (RFID)
electronic data interchange (EDI).
point-of-sale data.
The supply chain operations reference (SCOR) model reports the fraction of orders filled by a distribution center in a specific time period
The same quality management program on reducing waste can also be used to meet sustainability goals.
All the following are enablers of efficient supply chain management except
bar codes.
the internet.
RFID tags.
price tags.
A supply chain consists of an integrated group of processes to source, make, and store products.
Supply chains for services are easier to define than supply chains for manufactured goods.
Companies resist establishing green supply chains for all the following reasons except that
green practices face additional government, societal and cultural pressures.
green manufacturing requires costly new equipment and practice.
the market is soft for products with green attributes.
green initiatives lower costs because fewer resources are consumed.
Increased uncertainty and variability in a supply chain typically results in
larger inventories.
more accurate order fulfillment.
lower costs.
faster deliveries.
Information sharing in support of supply chain integration includes all the following types except
demand data.
cost and profit data.
production and shipping schedules.
inventory stocks.
An ongoing risk management process builds resiliency into the supply chain.
Supply chain management focuses on integrating and managing the flow of manufactured goods, services, and related information.
Supply chain uncertainty and variability may result in incomplete and late orders.
The impetus for commitment to sustainability generally comes from ____________ in the supply chain and moves __________ to suppliers.
downstream, midstream
upstream, downstream
midstream, upstream
downstream, upstream
Which of the following is not a key to effective supply chain management?
independence among members
trust among members
collaboration among members
communication among members
Fill rate is one of the three key performance indicators in measuring supply chain performance.
Sustainability is defined by the United Nations as sacrificing the present needs to ensure the needs of future generations are more than satisfied.
Traditionally, each supply chain member was viewed as a separate, stand-alone entity focused on its own goals.
Supply chain integration does not involve __________________ among supply chain members.
reducing competition
providing information
coordinating work flows
collaborating on replenishment
_______________________ is not a perceived advantage of radio frequency identification (RFID) technology.
Loss of personal privacy
Lower distribution costs
Reduced stock-outs
Prevention of fraud or theft
Use of radio frequency identification (RFID) technology makes it possible for a customer to determine production schedules.
The suppliers in a supply chain are referred to as ______________ supply chain members.
midstream
None of these answer choices is correct.
Inventory turnover is computed by
multiplying the average aggregate inventory value by cost of goods sold.
dividing the cost of goods sold by the average aggregate inventory value.
subtracting cost of goods sold from the average aggregate inventory value.
dividing the average aggregate inventory value by costs of goods sold.
A supply chain encompasses only the activities associated with the flow of goods.
Companies address uncertainty in their supply chains by holding extra inventory.
Going green has become one of the most visible recent trends in operations and supply chain management.
Which of the following is not one of the three key performance indicators (KPI) used to measure supply chain performance?
inventory days of supply
fill rate
postponement rate
inventory turnover
The impetus for sustainability comes from downstream members of the supply chain and moves upstream to include suppliers.
Increasing supply chain transparency only magnifies the bullwhip effect.
The United Nations defines sustainability as meeting _________ needs without compromising the ability of ______ generations to meet their needs.
future, present
present, future
present, present
future, future
Which of the following refers to an approach to risk management that aggregates risk?
risk pooling
risk optimizing
risk capturing
Information is the essential link for coordination among all supply chain members.
Collaborative planning, forecasting and replenishment (CFPR) is a process where the more influential member of the supply chain dictates schedules to ensure customer demand is satisfied.
Supply chain processes include
production.
distribution.
All of these answer are correct.
Requiring suppliers to deliver goods when demanded by the customer is called
periodic delivery.
continuous delivery.
on-demand delivery.
All of these answer choices are correct.
Spend analysis strives to
reduce procurement costs.
improve efficiency of procurement process.
reduce procurement costs and improve the efficiency of the procurement process.
Which of the following is not an obstacle to global supply chain management?
decreased delivery times
different business practices
differences in communication technology
increased documentation
Landed cost includes
value added tax.
duties.
customs.
Moving production related operations from foreign countries back to domestic locations called
reverse globalization.
inverse trade agreesments.
The Nationalization of trade movement.
_________ are websites where companies and suppliers conduct business-to-business activities.
E-procurements
E-marketplaces
Reverse auctions
The _________________, also known as the 10+2 initiative, reduces terrorism by utilizing the latest tracking and tracing, and communication and reporting technologies.
security within initiative
secure freight initiative
secure borders initiative
The driving force behind transportation and distribution in a highly competitive environment is
speed.
quality.
cost.
flexibility.
The most common mode of transporting products is
trucking.
package delivery.
water.
railroad.
Internet transportation exchanges bring together shippers who post __________ and carriers that post __________ in order to arrange shipments.
loads, capacity
capacity, loads
loads, loads
capacity, capacity
Distribution centers generally ship products to
suppliers.
customers.
retailers.
warehouses.
Which mode of transportation is the most cost effective for transporting raw materials?
Intermodal
Trucking
Railroad
Pipeline
Companies that purchase ___________________ over the Internet tend to do it with suppliers with whom they have an established relationship.
finished products
indirect products
direct products
international products
Distribution includes all of the following activities except
packaging.
storing.
shipping.
_________________ companies use web-based technologies that directly link to customers' websites to eliminate obstacles to global trade.
International trade logistics (ITL)
Global trade facillitaors (GTF)
International trade solutions (ITS)
Spend analysis is a formal process for __________________________ spending data.
collecting
cleansing
classifying
All of these answer choices are correct
The primary focus of distribution in terms of what it accomplishes is
maintaining inventories.
logistics.
customer service.
order fulfillment.
Nations have joined together to form trading groups with no
import tax.
tariffs.
Companies use ______________ teams to facilitate communication and information sharing and to coordinate processes between company and suppliers.
cross enterprise
supplier enhancement
customer care
Long life, high capital cost, and low operating costs are associated with which mode of transportation?
pipeline
trucking
airline
With vendor-managed inventory,
distributors generate orders.
manufacturers place orders.
customers place orders.
retailers place orders.
Rival companies pooling their distribution resources to reduce cost are engaging in
collaborative logistics.
distribution outsourcing.
cross docking.
Intermodal combines several modes of shipment. The most common intermodal combination globally is
truck-water-rail-truck
truck-rail-truck-water
rail-water-rail-truck
Supplying orders in a short period of time according to a predetermined schedule is called
The decision to purchase goods and services that were produced in-house from an outside supplier is called
outsourcing.
Benefits of e-procurement include all of the following except
faster delivery.
fewer transactions.
lower prices.
reduced labor.
What a company does best is often referred as the firm's core
competencies.
activities.
competitiveness.
capabilities.
Partnerships between customers and suppliers are beneficial because they
require suppliers to build facilities near the customer.
enhance competition in the supply chain.
provide security and stability.
reduce the need for global suppliers.
Which mode of transportation transports products in liquid form?
ocean by ship
pipeline and ocean by ship
International trade specialists include all of the following except
purchasing agents.
duty specialits.
export packers.
finance brokers.
______________ is a formal process of collecting, analyzing, cleansing, and classifying spending data.
Budget classifying
Budget analysis
Spend classifying
Spend analysis
Partnerships between customers and suppliers require suppliers to provide
higher quality.
prompt delivery.
The selection of suppliers is called
_________________ is the process of ensuring on-time delivery of customers' orders.
Customer service.
Maintaining inventories
Logistics
Order fulfillment
The trend in distribution that allows companies to focus on their core competencies is called
With _________, customers posts contracts for items it want to purchase so that suppliers can bid on.
e-procurement
e-marketplaces
reverse auction
Companies often outsource to
focus on core competencies.
achieve greater flexibility.
reduce costs.
All if these answer choices are correct.
The three main categories of goods and services that a company tend to outsource include all the following except
original equipment manufacturer (OEM).
everyday equipment (EDE).
corporate services.
maintenance, repair, and operations (MRO)
The mode of transportation that utilizes the most containers is
intermodal.
rail.
Internet transportation exchanges brings together shippers who post __________ and carriers that post __________ in order to arrange shipments.
With ________________, some of the manufacturing activities are moved into the warehouse or distribution center.
postponement
vendor managed inventories
cross docking
In a supply chain, __________________ is the movement of a product from one location to another as it makes its way to the final customer.
distribution
transportation
material handling
Distribution and transportation are often referred to as
The products that go directly into the production process of a product are called
direct products.
indirect products.
finished products.
For some manufacturing companies, transportation can run as much as _____________ of total production cost, and run as high as _____________ of revenue.
20 percent, 6 percent
30 percent, 10 percent
40 percent, 14 percent
Factors driving globalization of the supply chain include all of the following except
advances in information technology.
government intervention.
international trade agreements.
lower cost transportation.
Which of the following is not a feature of a warehouse management system?
customer labeling and packaging
warehouse optimization
order tracking
vendor management
Which of the following countries is not an important U.S. trading partner?
Russia
Canada
China
Mexico
Retailers expect suppliers to make frequent delivery of merchandise that includes a mix of different products in small quantities in what is called a
mixed truckload.
mixed pallet.
partial truckload.
partial pallet.
All of the following factors pressure companies for quicker response and shorter cycle times except
demanding customers.
longer product life cycles.
globalization.
All of the answer hoices are correct.
___________ is generally credited with the development of lean production.
W. Edwards Deming
Frederick Taylor
Taiichi Ohno
None of the answer choices is correct.
Which of the following is not a basic element of lean production?
small lot production
pull system
flexible resources
repetitive production
In lean production, waste is defined as
overproduction.
unnecessary movement.
high levels of inventory.
All of the answer choices are correct.
The pace at which production should take place to match the rate of customer demand is known as
kanban time.
product flow time.
takt time.
jidoka time.
In a pull production system, a card that corresponds to a standard quantity of production is known as a(n)
jidoka.
kaizen.
andon.
kanban
In a pull system reducing the number of kanbans
increase inventory making problems less visivle.
increase inventory making problems more visible.
reduce inventory making problems less visible.
reduce inventory making problems more visible.
Which of the following statements concerning small-lot production is not true?
small-lot production requires more capital investment
small-lot production requires less space
small-lot production simplifies transportation between workstations
small-lot production allows processes to be mover closer together
Lower inventory levels make processes
less dependent on each other while revealing bottlenecks more quickly.
more dependent on each other while keeping bottlenecks hidden.
less dependent on each other while keeping bottlenecks hidden.
more dependent on each other while revealing bottlenecks more quickly.
Which of the following is not a typical component of lead time?
waiting time
setup time
maintenance time
processing time
Improved scheduling of materials, workers, and machines will most generally affect
processing time.
move time.
waiting time.
setup time.
Which of the following is not a principle for reducing setup times?
converting internal setup to external setup
seperating internal setup from external setup
performing setup activities in parallel
converting external setup to internal setup
______________ setups can be performed in advance while the machine is running.
Internal
Unnecessary
External
Parallel
A ___________ is a foolproof device that prevents defects from occurring.
kaizen
jidoka
muda
poka-yoke
The authority given to the worker to stop the production line if quality problems are encountered is known as
The concept of allocating extra time to a schedule for planning, problem solving, and maintenance is known as
preventative scheduling
under capacity scheduling
over capacity maintenance
preventive maintenance
The benefits of lean production include all of the following except reduced
lead times.
product variety.
costs.
inventory.
All of the following are benefits expected from implementing lean production except
reduced capacity.
better quality.
shorter lead times.
improved sales.
Lean production is difficult to implement when
demand is highly variable.
product cariety is high.
there are many unique products.
Combining the practice of preventive maintenance with the concepts of total quality is known as
reliability assurance.
total preventive quality.
total productive maintenance.
quality breakdown maintenance.
Mixed-model sequencing
reduces worker productivity.
facilitates total productive maintenance.
supports uniform production levels.
increases product lead times.
Which of the following is not typically a component of lead time?
breakdown time.
wait time.
A ____________ kanban is used to order material in advance of production.
material
withdrawal
supplier
production
Which of the following is not a benefit of lean production?
increased capacity
move customers
more product variety
greater flexibility
Successful companies use lean to
finely tune an operating system.
overhaul an operating system.
replace an operating system.
American workers implementing lean prefer
the fast pace of kaizen biltzes.
the slow pace of continuous improvement.
to distrupt the process.
to never participate.
Lean and Six Sigma are
poor partners for process improvement.
poor partners for supply chain improvement.
natural partners for supply chain management.
natural partners for process improvement.
Analyzing process flow and eliminating waste is referred to as
just-in-time.
the Toyota Productive System.
values stream mapping
Leaning a supply chain ____________ flow through a series of suppliers.
pushes an intermittent
pushes a smooth
pulls an intermittent
pulls a smooth
Kaizen is a Japanese term that means fool proofing to prevent defects.
Mass production means doing more with fewer workers, less inventory, and less space.
The individual generally credited with the development of lean production is an American.
In lean production, waste is defined as anything that does not add value to the product.
General purpose machines are an example of flexible resources in lean production.
Producing items before they are needed is considered waste under the principles of lean production.
Waiting for parts to arrive or for machines to finish production is considered a form of waste under the principles of mass production.
The time required for a worker to complete one pass through the operations assigned to her is called the operator cycle time.
Takt time is the pace at which production output is maximum.
Manufacturing cells are comprised of groups of similar machines that process a family of parts.
Taiichi Ohno observed that customers in American supermarkets pull items through the system based on what is needed to satisfy demand.
Push systems rely on predetermined production schedules often generated by computerized systems.
The concept of pull production is easy to implement because it is similar to traditional scheduling procedures.
Kanbans were derived from the two-bin inventory system.
Advantages of small-lot production include requiring less space and lower capital investment.
The lower inventory levels associated with small-lot production make processes more dependent on each other.
Setup time is not a component of the cumulative lead time for a manufactured product.
The lower inventory levels resulting from small-lot production hide problems in the production process.
Internal setup activities can be performed when a process is running.
Reducing variability in production through more accurate demand forecasts is one way to create more uniform production levels.
A poka-yoke is any foolproof device that prevents defects or injury from occurring.
The authority for a worker to stop the production line when quality problems are encountered is known as poka-yoke.
Total productive maintenance combines preventive maintenance with kaizen.
Lean concepts cannot be applied to services.
Flexible resources is one of the basic elements of lean production.
The concept of cellular layouts was developed by a U.S. engineer in the 1920s.
The output of a manufacturing cell is changed by adding or removing workers.
Unlike a pull system, a push system prevents both overproduction and underproduction.
One benefit of small lot production is that workers demonstrate fewer tendencies to let poor quality pass.
In lean production, a strong relationship exists between setup times and lot size.
In a lean production system, kanban systems have been shown to handle large fluctuations in production requirements on the final assembly line with no problem.
Poka-yolk is a Japanese term used to describe the removal of waste in a lean production system.
To keep machines running firms can use either breakdown maintenance or preventative maintenance.
Firms that adopt lean production experience reductions in employee training costs.
Early adopters of lean production in the U.S. were unsuccessful because they tried to implement lean by slashing inventories by forcing their suppliers to make more frequent deliveries.